Spain’s Machine Tool Sector Ends 2025 Mixed

Donostia-San Sebastián, Spain – The Spanish advanced manufacturing and machine-tool sector reached a provisional turnover of €2,207.62 million in 2025, which represents a 4.99 percent decrease compared to 2024. In this context, the two main sub-sectors, metal cutting and metal forming, have evolved disparately: while metal cutting has recorded a 4.36 percent increase in its turnover, the metal forming sub-sector has experienced a fall of 21.21 percent.

Exports stand at €1,739.88 million, which is a slight drop of 0.55 percent compared to 2024. By sub-sector, the metal cutting sector performed well, with an increase of 2.14 percent to reach €864.43 million, while the metal forming sector recorded a decline of 5.08 percent down to €285.93 million.

The top destinations for our exports were the United States, Germany, Mexico, Italy, China, France, India, and Canada. The United States remains in first place with 13.45 percent, consolidating its importance and showing sustained growth compared to 2024. Germany, close behind with 13.19 percent, has managed to remain stable and continues to be a key market for our international business. Mexico, which in 2024 had stood out as the leader in exports, now ranks third with 9.62 percent, although its figures remain very significant. Italy, with 6.77 percent, and China, with 6.22 percent, complete the group of the top five destinations. While Italy has maintained a moderate volume after previous years of strong business, China shows a slight decline compared to the 2024 results, confirming the volatility of this market.

José Pérez Berdud, President, AFM Cluster, said, “2025 is a difficult year to rate. In a single year, situations coexist that are almost contradictory and not easy to interpret. Geographical markets are certainly in turmoil, with Europe still quite weak, although recovering slightly; the United States with robust demand but facing difficulties due to tariffs and exchange rates; and China fiercely limiting the purchase of foreign equipment. The sectors are also performing unevenly. While the automotive industry has cut investment, severely affecting metal forming, aeronautics, defence, and rail, certain areas of the energy sector are experiencing strong activity. Despite the difficulties, I think we should be positive, as we are able to manufacture machines of the highest technology that compete shoulder to shoulder with the best, and we are turning this into a relevant business opportunity. This is the result of all the good work that has been done over the years. We must continue to build our future today.”

2025 Orders and 2026 Forecast

Orders recorded in 2025 are up 2.29 percent on those received in 2024. Metal cutting has set a record and has a healthy portfolio for the coming months. Metal forming is declining once again and feeding its activity by consuming the portfolio. On the domestic market, the increase is 41.47 percent while exports are down by 1.65 percent. Despite everything, orders have grown by 17.5 percent in Europe and 4.3 percent in North America (the US has been the leading market in terms of uptake, accounting for almost 22 percent of the total) and have fallen by 1.2 percent in China.

“The sector has closed what was a very difficult year in management terms. Metal cutting, with its brilliant performance, increased its turnover and significantly expanded its orders to set a record, while metal forming fell sharply in both these parameters, heavily impacted by the situation in the automotive sector and Chinese competition. 2026 will continue to be a difficult year and one full of opportunity. We do not expect any big changes in the short term; the challenge will be to keep business stable, especially in metal forming, and through our solid positioning in several sectors that drive the industry, to generate sufficient uptake,” the AFM Cluster President explains.

China: An Increasingly Decisive Competitor

China has established itself as a key and growing player in the international machine tool market, combining a clear commitment to local production with remarkable technological advances. Their import substitution policies and strong international presence with highly competitive products are having a direct impact on order intake and pose significant challenges for European industry, which is being forced to strengthen its competitiveness, innovation, and adaptability.

Xabier Ortueta, General Manager, AFM Cluster, stated, “China is restricting imports of our machines, favoring local purchases, whose technological component has advanced considerably. The effect has been very significant in terms of order intake, and we have seen a sharp decline in that market. Their emergence in international markets with very low-priced products (sometimes even below European cost levels) and the low penetration of European components in their value chains means we are facing a very tough rival. To compete, various contributions, both public and private efforts, are required.

Ortueta continued, “Therefore, our companies must continue to work to improve their competitiveness, investing and taking risks to transform the industry. In the case of our machine tool sector, we must continue to focus on technology and our strengths in certain niches and sectors, but without renouncing diversification and making the best of our opportunities. Learning from our competitors, including the Chinese, will be key. European, national, and regional authorities must, for their part, help to cushion the blow by protecting their industry from an unprecedented onrush. Furthermore, it is crucial that they facilitate the increase in competitiveness of our industry, making abundant resources available to drive transformation, R&D and innovation, and investment in the renewal of production equipment. Today we are faced with as many opportunities as risks, and we must make the best of the former, protecting ourselves wherever needed.”

BIEMH 2026 Gears Up in Bilbao

The country’s leading industrial trade fair will be held in Bilbao Exhibition Centre from March 2-6, 2026, with excellent prospects. The 33rd edition of the International Machine Tool Biennial will feature the confirmed participation of more than 1,500 exhibiting companies from 29 countries, consolidating its position as one of the major international events for advanced manufacturing. Alongside machine tools, tools & components, additive manufacturing, metrology, and services for industry, BIEMH 2026 will focus on sustainable productivity and give prominence to key areas such as robotics, automation, and digitalization, which are determining factors for industrial competitiveness and the evolution of production processes. The fair seeks to reinforce its attractiveness through a broad exhibition offering and an activity program aimed at promoting interaction between exhibitors and visitors.

The WORKinn Talent Hub, an initiative devoted to the promotion of industrial jobs and the connection between companies and talent, will run alongside BIEMH. Ortueta stated, “The domestic market has remained strong throughout 2025, with both order intake and business in various sectors, except for the automotive sector, exceeding expectations. The final stretch of 2025 and the start of 2026 in the domestic market have been very encouraging, with good levels of investment. We are looking forward to a BIEMH with a top-rate occupancy of exhibition spaces, reminiscent of the excellent 2024 edition. The response is also positive regarding visitor registration. We are undoubtedly witnessing the best BIEMH of all time, and we have everything ready to supercharge the country’s industrial competitiveness.”

Image Source: Spanish Association of Machine Tool, Accessories, Component Parts and Tools Manufacturers (AFM)